9911796707
TMI Blog1989 (5) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... come for the accounting period relevant to the assessment year 1971-72 ?" The facts shortly stated are that, according to the Income-tax Officer, the assessee-firm was, at one time, the owner of the building at premises No. 13, Kapalitola Lane, Calcutta, together with land admeasuring 15 cottahs and 12 chittaks. The said property was acquired by the Government of West Bengal for the accommodation of the Calcutta Police, vide notification under section 4 of the Land Acquisition Act of 1894 and notification under section 6 of the said Act dated June 6, 1970. The Second Land Acquisition Collector, Calcutta, vide award dated February 4, 1971, determined the compensation payable to the assessee at Rs. 7,69,887.06. Admittedly, the compensatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 45% of the balance, i.e., Rs. 9,08,290 4,08,730 ---------------- 4,13,730 ----------------- 4,99,560. " ----------------- Aggrieved by the said order of the Income-tax Officer, the assessee brought the matter by way of appeal before the Appellate Assistant Commissioner. As on the date fixed for hearing of the appeal none appeared for the assessee, the Appellate Assistant Commissioner upheld the order of the Income-tax Officer determining the taxable capital gain at Rs. 4,99,560 by observing as under : "In the grounds of appeal, the appellant has challenged the very basis of assessment by stating that no compensation was paid to the appellant firm, no proceeding for acquisition of the said properties was conducted again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt., Alipore, 24-Parganas, was not declared and made in the year under consideration, the higher compensation of Rs. 9,60,950 never accrued to the assessee in the year under consideration. Under section 45, the capital gains arising from the transfer of a capital asset is charged to tax in the previous year in which the asset is transferred. In the case of compulsory acquisition, the crucial date for the purpose of ascertaining the year of chargeability is the date on which the relevant notification of acquisition is published. Where the transfer of a capital asset is by way of compulsory acquisition under any law, the capital gains has to be computed by taking the compensation awarded by the Government as the full value of consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gets settled after many years when the statutory period of limitation for reopening the earlier computation of capital gains would have expired. With a view to removing this difficulty, the Finance Act, 1978, has inserted a new sub-section (7A) in section 155 of the Act with retrospective effect from April 1, 1974, to enable recomputation of capital gains in cases where transfer of the capital asset is by way of compulsory acquisition and the compensation for such transfer is enhanced or further enhanced by a court, Tribunal or other authority. This confirms the intention of Parliament that it is immaterial when the additional compensation is awarded. Whenever it is awarded, it will relate back to the year of transfer. Even if the right to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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